Why rich Asian countries are now eager for foreign workers

Wealthier Asian countries are increasingly looking to foreign workers to address their growing labor shortages, driven by shrinking native populations. These nations, including Japan, Singapore, South Korea and Taiwan, are taking unprecedented steps to ease immigration policies, recognizing that the influx of foreign labor is critical to maintaining economic stability.

Key figures: In South Korea, the E-9 visa quota, which governs non-professional workers, surged from 120,000 in 2023 to 165,000 in 2024, while the E-7-4 visa quota, which applies to professional or “skilled” workers, is up from 2,000 to 35,000. This year, foreign job seekers were also allowed to begin extending their stay for an additional year. Similarly, Japan saw a 12% rise in its foreign workforce in 2023, reaching 2 million workers. Companies like Hizatsuki Confectionery are now hiring foreign workers out of necessity. “To be able to survive, we need to accept foreign workers,” its president Takeo Hizatsuki said. In Taiwan, new laws allow mid-skill migrants with relevant experience to become residents, while Singapore is loosening visa restrictions to align with its strategic economic priorities. Despite these reforms, immigration remains controversial in countries where some citizens prize cultural homogeneity.
The big picture: These efforts come amid widespread concerns over aging populations and declining birth rates in Asia’s wealthiest countries. Economist Michael Clemens predicts South Korea will need to increase the foreign share of its workforce to 15% over the next four decades to stabilize long-term growth, an ambitious goal given that foreign labor currently makes up only 3% of its workforce. Japan, too, is under pressure, needing an additional 2.1 million foreign workers by 2030 to maintain its economy. Japan’s low unemployment rate contributes to labor shortages, further emphasizing the necessity of foreign workers. Sustaining these high inflows could prove difficult as migrant workers’ countries of origin — like China and Indonesia — are also facing demographic challenges. Moreover, societal tensions remain, as evidenced by demonstrations in Taiwan against plans to bring in more Indian workers.

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